After seven years of budget cuts totalling £22m, fire chiefs are desperate to negotiate a deal to lessen the blow of the repayment.

But a leaked letter seen by ChronicleLive reveals the Government is not willing to negotiate, imposing a two-and-a-half week deadline for TWFRS to sort out a repayment plan or face an invoice for over £10m outright.

Back in May, the fire service requested a meeting with Fire Minister Nick Hurd to discuss how to pay back the huge sum of money.

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Some 74 days later and the Home Office’s response, signed by Marc Sherratt, the head of firefighters’ pensions, has arrived and states that the Minister “considers the matter closed” and is refusing to meet representatives from the North East.

The letter also confirms the department is now formally commencing the recovery process and has given the fire service until August 25 to come up with a repayment plan.

Should TWFRS fail to meet the deadline, the letter goes on to claim a bill for the full £10m will be issued followed by a warning that “the Home Office reserves the right to recover through the courts”.

Nick Forbes (Image: Getty Images Europe)

Nick Forbes, leader of Newcastle City Council and vice-chair of the Tyne and Wear Fire and Rescue Authority, said: “That the Government is now refusing even to discuss this threat to our fire service shows a shocking disregard for safety across Tyne and Wear.

“There will be multi-million pound cuts to firefighting budgets directly as a result of the Home Office’s macho grandstanding.

“There is still time for the Government to avoid this, and I urge Ministers to see sense and talk to us about this.”

A TWFRS spokesperson said: “There is an open line of communication between the Chief Fire Officer and the Home Office on this issue and we are keen to achieve a resolution at the earliest opportunity.”

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TWFRS, which is still reeling from the loss of 343 staff members and the removal of six frontline appliances in seven years.

The Fire Brigade Union (FBU) claims not only did staff not benefit from the pensions grant, it helped councils maintain low council tax precepts, winning them Whitehall plaudits at the time.

Andy Noble, FBU executive council member for the North East, said: “Recent events have shown the importance of maintaining a fully funded and effective fire and rescue service.

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“Grenfell Tower is an unfortunate timely reminder of what can happen when the Government puts austerity politics before public safety.”

He added: “If TWFRS is forced to pay back the historical overpayment, it will lead to the decimation of the service we provide, without doubt impacting not only on firefighter safety, but that of the general public also.

“In the interest of public safety we would urge the Minister to reconsider his decision.”

A Home Office spokesperson said: “We have made clear to TWFRS that, while they are required to repay the money in full, we will consider staged repayment terms.”